Guys, while checking 2012 mock I made 2 erros in a thing I was quite sure I got a good hande on, namely:
Calculating value of the firm using FCFF and then subtracting debt to get equity value. Here answers said that debt = long-term debt + notes payables + account payables. (I don’t like the last one)
Calculating EV. Here, accoring to answers, debt = long-term debt only. (why don’t include short-term debt, which is essentially current portion on long-term debt?)
For reference, it was afternoon session set #6.
Can anyone please explain me those differences in definition of debt in different formulas??